On Thu, Oct 14, 2010 at 11:17 AM, Hrishikesh Murali < [email protected]> wrote:
> On Thu, Oct 14, 2010 at 10:29 AM, Kenneth Gonsalves > <[email protected]>wrote: > > > > >in the business point of view opensource softwares can make profit > > > >much lower than that of proprietary. Is that be true? > > > > no > > -- > > regards > > KG > > > > Why do you say so? > > -- > Thanks and Regards, > Hrishikesh Murali > > Some broad insights as a person who ran an opensource consulting business. In products business, the margins for the SI/reseller is low. Money is made in services. The "Total Cost of Ownership" TCO is high. If a smart person invests time and puts together a suite of software tha delivers the results, he can sell it based on TCO. If the opensource solution is sold at half the TCO, the money the person makes would be far more than what he would make providing services on closed source products. E.g replacing an Exchange 250 user server with Postfix+ courier+ webmail or Zimbra/Scalix would be a good case. This scenario holds good for most commonly used applications (especially those that are user licence based) but may fail in mission critical s/w like ERP. -- Mohan Sundaram _______________________________________________ ILUGC Mailing List: http://www.ae.iitm.ac.in/mailman/listinfo/ilugc
